Remember when you couldn’t step foot inside a shopping mall without being plagued by Forever 21’s fluorescent lighting and loud pop music? Well, those days are officially in the past. The once-popular mall brand has fallen by the wayside as competitive online retailers like Shein have taken over the fast fashion space. Now, Forever 21 is going extinct for good. And there’s more bad nostalgia shopping news: Guess is scaling back its footprint, too. Here’s everything you need to know.
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Forever 21 is shuttering all its U.S. stores by May 1, 2025.
Forever 21 has filed for bankruptcy a second time, citing hyperinflation and "competition from foreign fast fashion companies" a là Shein and Temu as its primary causes of death. The first filing occurred in 2019 amid the COVID-19 pandemic.
According to March 2025 court documents obtained by KTLA, Forever 21 has accrued $1.6 billion in debt and disclosed that its asset portfolio is worth an estimated $100 million to $500 million. Liquidation sales are well underway at U.S. store locations; international Forever 21 locations have not been impacted.
"While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends," said Forever 21 chief financial officer Brad Sell in a statement.
As part of its "orderly wind down" of U.S. operations, Forever 21 will shutter 354 total stores and discontinue its website. The retailer has already terminated its poorest-performing locations (236 stores) and plans to close the remaining 118 stores by May 1, 2025. Shoppers have until April 15 to redeem gift cards.
"On behalf of the Company, I’d like to express our deep appreciation for the hard work of our dedicated employees and their commitment to our customers," continued Sell. "We are also grateful for the many years of support from our partners and our loyal customers, who have allowed us to serve as a fashion industry leader and go-to retailer for generations."
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Guess plans to close 20 stores by next year.
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Known for its iconic jeans and trendy handbags, Guess announced that it’s scaling back its U.S. operations. The retailer plans to close 20 stores by the end of fiscal year 2026, though Guess has not shared which locations will be impacted.
"We expect to reduce our North American store fleet by roughly 20 stores by the end of the year, with some of them closing this year at their natural lease end," said CEO Carlos Alberini during an earnings call, per Retail Wire. "Traffic declines into our retail stores have persisted."
According to Alberini, the store closures will pour $30 million back into the company’s operational profits for fiscal year 2027. This will be pivotal to sustaining Guess’ long-term growth. Adjusted net earnings are down by 40 percent (or $70 million).
